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CF Industries (CF) Subsidiary Redeems Senior Notes Due 2018

Zacks Equity Research

CF Industries Holdings, Inc.’s CF fully-owned subsidiary CF Industries, Inc. has redeemed all of the $800 million outstanding principal amount of its 6.875% senior notes due May 2018. 


This was done in accordance with the optional redemption provisions of the indenture governing the notes. The total redemption value was around $816.6 million plus accrued and unpaid interest to, but not including, Dec 1, 2017.


CF Industries has significantly outperformed the industry it belongs to over the last six months. The company’s shares have moved up 43% over this period, compared with roughly 24.5% growth recorded by the industry.




According to CF Industries, the global demand for urea was strong during the third quarter and imports to Brazil went up through August by roughly 50% year over year. Also, during the quarter, India issued three tenders resulting in purchase of 1.4 million metric tons of urea.  


The third quarter also witnessed a rapid increase in the global price of urea from second quarter, which was driven by considerably lower Chinese exports, higher production and energy costs, a weaker dollar and strong global demand.


The company expects lower Chinese urea export volumes to continue and volatility in nitrogen prices in global markets to continue through 2018.


CF Industries is also well placed to gain from its efforts to boost production capacity. The company is also enjoying the benefit of ample natural gas supply.

CF Industries Holdings, Inc. Price and Consensus


CF Industries Holdings, Inc. Price and Consensus | CF Industries Holdings, Inc. Quote


Zacks Rank & Other Stocks to Consider

CF Industries currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Ingevity Corporation NGVT, Koppers Holding Inc. KOP and Westlake Chemical Corporation WLK, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has expected long-term earnings growth of 12%. Its shares have gained 44.1% year to date.

Koppers has expected long-term earnings growth of 18%. Its shares have rallied 25.1% year to date.

Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have moved up 76% year to date.

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